Scientific Games, a global leader in the gaming and lottery industry is making a move to change its business model. In the iGaming world, they are famous for providing quality gaming products and iGaming solutions to the gambling market. However, they are now looking to change as Scientific Games to Sale its Sports Betting and Lottery Division.
According to gambling industry news, the casino equipment and online casino game manufacturer wants to focus on their gaming business. The press release they sent out yesterday says they want to divest themselves of these division to optimize their portfolio. Furthermore, they said the sale of these divisions would “strengthen” their balance sheet.
Scientific Games to Sale its Sports Betting and Lottery Division to Focus on Gaming
While the sale of these division might come as a shock to many, it is not a surprise to investors. This is because last year, the company said they were conducting a strategic review of its corporate operations. Furthermore, the Gaming company has been trying for several years to reduce its $9.2 billion long-terms debts.
Their plan is to establish their company with just their leading gaming, iGaming and SciPlay Businesses. This is because these 3 divisions have greater momentum and collectively deliver great value for the company. Furthermore, they plan on growing their online gambling products to rival that of their land-based gambling business.
The question amongst investors is how will they sales their sports betting business. According to Scientific Games, they will consider traditional IPO, SPA transaction, a straight sale or combining with another business. Needless to say, they are looking at all option to maximize the value of the sale.
The core components of their sports betting division include: their OpenBet Platform, Trading services, DonBest, which provides sports betting odds. Furthermore, it will also include their SportCast bet-builder business which recently became part of the company.
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